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FHA 203K Breaking the Mold and Stigma

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Mortgage Professional America | 15 Aug 2012, 10:03 AM Agree 0
The FHA 203k mortgage program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings.
  • Aj Nazzaro | | 15 Aug 2012, 10:45 AM Agree 0
    Excellent article, I used a 203k mortgage a few years ago. It took a little longer to close than the average mortgage, but well worth the wait. I encourage everyone to consider it.
  • Tania | | 15 Aug 2012, 11:40 AM Agree 0
    just a few years before The Government, in the bible, it says: build a house, plant a tree, make kids, or something to that effect. Owning your own place is a basic nesting instinct as natural and ancient as a procreating instinct. Other than that, good article.
  • William Matz | | 15 Aug 2012, 07:09 PM Agree 0
    Excellent article. Let me add my concurrence, especially with Point #9. The home mortgage remains most folks' single most important financial transaction. That is the point at which borrowers should be doing financial planning, because -important as the mortgage is- it is only part of the total financial picture. No one should be borrowing without a financial plan, because that is the only way to determine what the "right" program and pricing are.

    As a tax attorney-broker, I have been working collaboratively with other financial professionals for over 20 years. Attorneys, CPAs, financial planners are often surprised when I show them mortgage options they did not know existed, often despite years of experience in financial services. Mortgage brokers can provide valuable pieces to the financial plan. But they can only do so effectively if they have sufficient education and training to understand the needs of the other financial professionals and show what mortgage program and/or pricing options will best fill those needs.

    In today's rigid mortgage environment the 30 fixed has almost become an automatic choice. But for the flood of Baby Boomers moving into retirement, there are many financial considerations that dictate other choices. Without a broker who can understand and explain how different mortgage options can address those other considerations, it is unlikely that a borrower will get the best fit in a mortgage.

    This article is a good contribution, helping illustrate how a 203k can be an appropriate choice. But -as always- it will only be an appropriate choice if it fits an overall financial plan.
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